1. LECTURE 13B – MANAGING QUALITY IMPROVEMENT TEAMS AND PROJECTS (CHAPTER 14) Benefits of teams, Employee empowerment, Implementing teams, Projects (Tools), Project Manager characteristics SJSU Bus. 142 - David Bentley 1

2. Topics SJSU Bus. 142 - David Bentley 2  Why employees enjoy teams.  Leading teams for quality improvement.  Types of teams  Implementing teams  Managing and controlling projects  Project manager characteristics

3. WHY PEOPLE ENJOY TEAMS SJSU Bus. 142 - David Bentley 3

4. Benefits of Teams Broad range of skills Workload sharing Increased flexibility Synergy Increased organizational learning Balanced decision making SJSU Bus. 142 - David Bentley 4

5. Five Motivators SJSU Bus. 142 - David Bentley 5 1. Mutuality 2. Recognition for personal achievement 3. Belonging 4. Bounded power 5. Creative autonomy

6. Employee Empowerment and Involvement - (1) SJSU Bus. 142 - David Bentley 6  Greater control over your work  No penalty for making decisions that don ’ t pan out  Management is changing and becoming more contemporary  Management is committed to quality improvement over the long haul

7. Employee Empowerment and Involvement - (2) SJSU Bus. 142 - David Bentley 7  Management will concede more control over company systems to you  Management values your ideas  Management trusts you and is worthy of trust in return  You will be rewarded for making decisions that benefit the company  Labor is capable of making decisions

8. Preconditions Necessary for Empowerment - (1) SJSU Bus. 142 - David Bentley 8  Clear authority and accountability  Participation in planning at all levels  Adequate communications and information for decision making  Responsibility with authority

9. Preconditions Necessary for Empowerment - (2) SJSU Bus. 142 - David Bentley 9  Flattening Hierarchies for improved effectiveness  Team leader roles and responsibilities  Team rules

10. Types of Quality Improvement Teams SJSU Bus. 142 - David Bentley 10  Process improvement teams  Cross-functional teams  Tiger teams  Natural work groups  Self-directed work teams  Technology teams  Virtual teams

11. IMPLEMENTING TEAMS SJSU Bus. 142 - David Bentley 11

12. Facilitation SJSU Bus. 142 - David Bentley 12  Helping or aiding teams by maintaining a process orientation

13. Team Building SJSU Bus. 142 - David Bentley 13  Follows a process that identifies rules for team members and helps them become competent

14. Examples of Teams SJSU Bus. 142 - David Bentley 14  Navy Seals  Massachusetts General Hospital Emergency Room  Penske Racing NASCAR team  Hewlett-Packard ERP implementation teams

15. Meeting Management SJSU Bus. 142 - David Bentley 15 1. Developing meeting objectives 2. Developing an agenda 3. Designing the agenda activity outline 4. Using process techniques 5. Parking lot

16. Conflict Resolution in Teams SJSU Bus. 142 - David Bentley 16  Team leaders and project managers spend 20% of their time resolving conflict

17. Conflict Resolution in Teams – (1) SJSU Bus. 142 - David Bentley 17 There are 4 stages in conflict resolution: 1. Frustration 2. Conceptualization and orientation 3. Interaction 4. Outcome

18. Conflict Resolution in Teams – (2) SJSU Bus. 142 - David Bentley 18 Leaders resolve conflict in different ways: 1. Passive conflict resolution 2. Win-win 3. Structured problem solving 4. Confronting conflict 5. Choosing a winner 6. Selecting a better alternative 7. Preventing conflict

19. Conflict Resolution in Teams – (3) SJSU Bus. 142 - David Bentley 19 Three alternative techniques:  Avoidance  Diffusion  Confrontation

20. IMPLEMENTATION METHODOLOGY SJSU Bus. 142 - David Bentley 20

21. Process Improvement Methodology – (1) Management responsibility Develop process improvement plan Determine process or area to examine Form and train Process/Quality Improvement Team SJSU Bus. 142 - David Bentley 21

22. Process Improvement Methodology – (2) Team: use coarse tools Process flowchart Check sheets and histograms Pareto analysis <--- (iterative Fishbone chart ---> steps) SJSU Bus. 142 - David Bentley 22

23. Process Improvement Methodology – (3) Team: use fine tools Process control charts Run diagrams Scatter diagrams + Failsafing SJSU Bus. 142 - David Bentley 23

24. Process Improvement Sequence – (4) Team Determine process changes Implement pilot process improvement Measure and evaluate results Repeat if results unsatisfactory; deploy full implementation if results satisfactory SJSU Bus. 142 - David Bentley 24

25. PDCA (or PDSA) Cycle Also known as the Deming wheel, or Deming/Shewhart cycle or wheel 4 parts to the cycle Plan - document and analyze Do - implement “improvement” Check (or Study) - compare to desired state Act - correct or standardize SJSU Bus. 142 - David Bentley 25

26. MANAGING PROJECTS SJSU Bus. 142 - David Bentley 26

27. Project Characteristics Definite beginning Definite end Long duration (often months or years) Very low product quantity Very high variety of tasks Multiple tasks often being performed concurrently SJSU Bus. 142 - David Bentley 27

28. Tools SJSU Bus. 142 - David Bentley 28  Qualifying projects  Project Charters  Force Field Analysis  Work Breakdown Structures  Network Diagrams (PERT/CPM)  Gantt Charts

29. Qualifying Projects SJSU Bus. 142 - David Bentley 29  Cost Benefit Analysis (CBA)  C t = Σ(C d + C i )  C = cost, t = total, d = direct, i = indirect  Payback Period  PP = C t /B a  PP = payback period in time, B a = annualized benefits  Difference between soft costs and hard costs (focus on hard costs)

30. Project Charters SJSU Bus. 142 - David Bentley 30  Help teams identify objectives, participants and expected benefits

31. Force Field Analysis SJSU Bus. 142 - David Bentley 31  Tool designed to identify and quantify all of the forces for and against organizational change  Score and sum the + and – forces  Draw a force field diagram

32. NETWORK DIAGRAMMING Work Breakdown Structures, Pert/CPM Tools, Gantt Charts SJSU Bus. 142 - David Bentley 32

33. Work Breakdown Structures (WBS) and Task Analysis SJSU Bus. 142 - David Bentley 33  Create work breakdown structure (WBS)  Identify Outcome Measures (activities)  Identify Task (Activity) Times (estimates)  Single estimate vs. three estimates (O,P,M)  Optimistic completion time  Most likely completion time  Pessimistic completion time  Identify Precedence Relationships

34. Planning Complex Projects - Work Breakdown Structure SJSU Bus. 142 - David Bentley 34 Project X Level 1 Level 2 Level 3 Level 4 Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

35. PERT/CPM Conventions One starting point One ending point No looping back Activities and events Activity on arrows vs. activity on nodes “Dummy” activity used to preserve integrity Zero time and zero resources All activities entering a node must be complete before starting the next activity SJSU Bus. 142 - David Bentley 35

36. Activity-on-arrow Pert chart SJSU Bus. 142 - David Bentley 36 1 2 3 4 56 Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB) Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

37. Activity-on-node Pert chart SJSU Bus. 142 - David Bentley 37 1 2 3 5 6 Locate facilities Order furniture Furniture setup Interview Remodel Move in 4 Hire and train 7S Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB) Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

38. Network Conventions SJSU Bus. 142 - David Bentley 38 a b ca b c a b c d a b c Dummy activity Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

39. PERT/CPM Steps - 1 Develop the work breakdown structure Identify all tasks from the WBS; identify resources Sequence tasks, determining dependency Estimate time duration of each task Single estimate vs. three estimates (O,P,M) Create the network (PERT) diagram SJSU Bus. 142 - David Bentley 39

40. Critical Path Longest duration path in project Determines the length of the overall project Slippage on critical path will delay project completion Focus on shortening the critical path to shorten the project “Crashing” may result in creation of new critical path SJSU Bus. 142 - David Bentley 40

41. PERT/CPM Steps – 2 Identify critical path (see previous slide) Determine ES, EF, LS, LF dates Calculate slack LS – ES or LF – EF SJSU Bus. 142 - David Bentley 41

42. Activity Network Diagrams – (1) SJSU Bus. 142 - David Bentley 42 Pert Chart steps: 1. List all tasks (activities) 2. Determine task times 3. Determine which tasks depend on the completion of others 4. Draw the network diagram

43. Network Diagram (PERT Chart) SJSU Bus. 142 - David Bentley 43 B 12 E3E3 C6C6 D5D5 A 15 I7I7 J 14 H9H9 F8F8 End Start K6K6 G8G8

44. Activity Network Diagrams – (2) SJSU Bus. 142 - David Bentley 44 Pert Chart steps (continued) 5. Determine the critical path 6. Compute early-start and early-finish times 7. Compute late-start and late-finish times 8. Compute slack times Slack time = late start – early start or = late finish – early finish

45. Path Lengths (+ critical path) Path Length A-B-C-E 36 A-B-D 32 F-G-I 23 F-H-J-K 37 (critical) SJSU Bus. 142 - David Bentley 45

46. Calculate ES, LS, EF, LF and Determine slack SJSU Bus. 142 - David Bentley 46 B 12 E3E3 C6C6 D5D5 A 15 I7I7 J 14 H9H9 F8F8 End Start K6K6 G8G8

47. ES, LS, EF, LF, and Slack - 1 Activity ES EF LS LF Slack F 0 8 0 8 0 H 8 17 8 0 J 31 17 31 0 K 37 31 37 0 SJSU Bus. 142 - David Bentley 47

48. ES, LS, EF, LF, and Slack - 2 Activity ES EF LS LF Slack A 0 15 1 16 1 B 15 27 16 28 1 C 27 33 28 34 1 E 33 36 34 37 1 D 27 32 37 5 SJSU Bus. 142 - David Bentley 48

49. ES, LS, EF, LF, and Slack - 3 Activity ES EF LS LF Slack G 8 16 22 30 14 I 16 23 30 37 14 SJSU Bus. 142 - David Bentley 49

50. Planning Simple Projects - Gantt Chart SJSU Bus. 142 - David Bentley 50 MARAPRMAYJUNJULAUGSEPOCTNOVDEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Facility Move Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB) Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

51. Crashing The compression of one or more tasks on the critical path Why crash? Avoid penalties Earn incentives Cost-benefit trade-off analysis How crash? Additional resources Overtime Alternative processes SJSU Bus. 142 - David Bentley 51

52. Controlling the Project PERT/CPM charts little use for control Gantt charts widely used Project cost reporting also useful Tools Microsoft Project Others SJSU Bus. 142 - David Bentley 52

53. Planning & Controlling the Schedule – Gantt Chart SJSU Bus. 142 - David Bentley 53 MARAPRMAYJUNJULAUGSEPOCTNOVDEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Facility Move Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB) Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

54. CHARACTERISTICS AND QUALITIES OF A GOOD PROJECT MANAGER? SJSU Bus. 142 - David Bentley 54

55. Characteristics/Qualities of a Good Project Manager Planning Organizing Delegating Communicating Oral Written ______________ Using people skills Customers/users Team members Analytical Time sensitive Milestones Deadlines _______________ SJSU Bus. 142 - David Bentley 55

56. Summary SJSU Bus. 142 - David Bentley 56  Teams and collaboration as a means of improvement  Behavioral aspects of building and leading effective teams  Movement towards teamwork  Teams evolving through stages  Project planning fundamentals